In a break that shapes the structure of shareholder energy, JPMorgan Asset Administration, which manages greater than $7 trillion in shopper belongings — severed all ties this week with proxy advisory giants ISS and Glass Lewis.
It is going to now rely solely on an inner, AI-driven voting platform known as Proxy IQ — the primary such transfer by a significant asset supervisor.
It comes days after President Trump issued an govt order directing federal companies to analyze proxy advisers, citing issues that their affect on board votes, CEO pay, and ESG insurance policies is pushed extra by political agendas than fiduciary obligation.
Collectively, Trump and JPMorgan waged a two-front assault on the proxy advisory trade — one political, one monetary. Trump’s order provides regulatory firepower. Dimon’s resolution delivers a market blow.
JPMorgan CEO Jamie Dimon, relentless critic of proxy advisers, known as these corporations “incompetent” and their dominance “completed with.” The financial institution’s full exit marks a direct problem to a system many view as opaque and out of date.
But in dismantling the outdated gatekeepers, JPMorgan could also be quietly putting in itself as a brand new one.
By changing exterior advisers with its personal AI platform, it now controls the very equipment of shareholder voting it as soon as condemned. What started as a campaign in opposition to centralized affect could also be remembered as a company land seize.
These developments underscore the rise of a extra decentralized and digitally engaged citizens — a part of a broader shift towards democratization of investing, as people acquire real-time entry to ballots and affect choices as soon as formed by a handful of energy brokers.
This spring’s proxy season might not hinge on an activist’s letter, banker spreadsheets or hedge fund media blitzes … however as an alternative on the short, quiet clicks of particular person traders — every with a couple of hundred shares — voting between Zoom calls and scrolling by way of message board threads.
When digital swarms reshape the roadshow
In March 2025, ExxonMobil moved to raise particular person traders — nonetheless formed by its 2021 conflict with Engine No. 1 — even with out adopting default proxy directions.
In September, the Securities and Trade Fee (SEC) accredited a program that lets particular person stakeholders robotically comply with board suggestions, aiming to counter chronically low voting turnout and disproportionate affect of institutional and activist traders.
And Exxon isn’t alone. Small traders blocked a share conversion at AMC in August 2023, triggering a lawsuit and court-approved settlement. The conversion and cut up took impact, revealing the persistence of a shareholder base as soon as hailed as the corporate’s savior.
At Disney in April 2024, Nelson Peltz’s proxy combat culminated in a vote that drew help from fans-turned-shareholders mobilizing round board accountability and artistic route. Whereas Peltz misplaced, Disney revamped investor engagement.
Fundamental Avenue traders rallied behind Elon Musk’s billion-dollar pay package deal at Tesla in June 2024 and once more in October 2025, circulating voting directions and movies throughout social media. This outreach momentum carried into the following vote.
These episodes level to a shift, not a revolt
One vital new mechanism drawing consideration is pass-through proxy voting — permitting mutual fund and ETF traders to vote their shares straight as an alternative of delegating authority to fund managers. It provides people direct management over votes connected to their belongings.
However it nonetheless solely issues in the event that they vote. Many unbiased shareholders skip proxy voting, as notices go unread. Engagement often emerges in a contested election, as traders maintain their ballots to see how the combat unfolds.
As of March 2024, BlackRock expanded its Voting Selection program to U.S. particular person traders in choose funds, enabling direct proxy voting. This marked the primary main rollout of pass-through voting inside fund buildings.
Nonetheless, solely 8% of BlackRock funds provide it, however it’s growing stress throughout the trade as evaluation grows round particular person investor inclusion.
However Ready for Godot is a mistake. Regulation can tweak the system, however actual change begins when traders are introduced in early, perceive the stakes, belief the method and select to have interaction.
Let the votes move: Unlocking actual shareholder affect
Funds ought to … Implement full pass-through voting throughout all funds in 2026.
BlackRock’s Larry Fink, Vanguard’s Salim Ramji, Constancy’s Abigail Johnson, State Avenue’s Yie-Hsin Hung and J.P. Morgan’s Jamie Dimon can set requirements now. Each particular person investor’s capital carries its personal vote.
Boards in parallel ought to …
- Make proxy voting as seamless as buying and selling. Traders can execute choices in seconds however face treasure maps to solid a proxy vote; comfort drives turnout.
- Acknowledge voting isn’t simply procedural — it’s reputational. Particular person shareholders vote on model belief. Opaque disclosures or footnote-heavy messaging erode confidence. Say clearly what you need and why.
- Clear directions flip a poll right into a voice. Not voting isn’t impartial — it cedes your energy to others who select to have interaction. Each proxy ought to say plainly, in daring in all correspondence: “We encourage you to vote. Should you don’t, your silence will increase energy of those that do.”
When proxy voting actually begins
Affect doesn’t start with a proxy. It begins with a viral publish that reframes a proposal in plain English, sharp YouTube explainer or social threads that flip legalese into a transparent takeaway. That is the place shareholder sentiment is fashioned and fortified.
As proxy season approaches, the identical query looms: Do we’ve the votes? This 12 months, outcomes might hinge on stakeholders who not often be part of investor calls.
“Belief is just like the air we breathe — when it’s current, no one actually notices. However when it’s absent, everyone notices.” — Warren Buffett
The opinions expressed in Fortune.com commentary items are solely the views of their authors and don’t essentially mirror the opinions and beliefs of Fortune.
